Page:Hints About Investments (1926).pdf/230

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1925, a bonus to shareholders in the form of new shares.

On a smaller scale the discount companies enjoy the same advantages as the banks, of handling a mass of money many times the size of their capital We saw that the Westminster Bank, with a paid-up capital of nine millions, held nearly 273 millions deposited with it by the public. When we look at the balance-sheet of the Union Discount Company, the largest of the joint stock companies that engage in this kind of business, we find that, with a paid-up capital of £1,125,000, it held forty millions "in loans and deposits, including provision for contingencies." Let us summarize its balance sheet of December 31, 1924:—

Capital paid up £1,125,000 Cash at bankers £1,320,683
Reserve Fund 1,475,000 British Govt. and other securities 5,724,642
Provident Fund 198,732 Loans at call and short dates 474,524
Loans and deposits, etc. 40,100,868 Bills discounted 47,023,680
Bills re-discounted 11,053,918 Debtors 9,322
Rebate on bills discounted 423,485 Premises 140,000
Profit and loss (less appropriations) 315,848
£54,692,851 £54,692,851

The position of the company is clear and pleasant; it has borrowed forty millions, put a net sum of thirty-six millions into bills